1321.58
Open-end loans by registrant - interest - charges.

(A)
A registrant may make open-end loans
pursuant to an agreement between the registrant and the borrower whereby:

(1)
The registrant may permit the borrower to
obtain advances of money from the registrant from time to time or the
registrant may advance money on behalf of the borrower from time to time as
directed by the borrower.

(2)
The
amount of each advance and permitted interest, charges, and costs are debited
to the borrower's account and payments and other credits are credited to the
same account.

(3)
The interest and
charges are computed on the unpaid balance or balances of the account from time
to time.

(4)
The borrower has the
privilege of paying the account in full at any time or, if the account is not
in default, in installments of determinable amounts as provided in the
agreement.

For open-end loans, "billing cycle" means the time interval
between periodic billing dates. A billing cycle shall be considered monthly if
the closing date of the cycle is the same date each month or does not vary by
more than four days from such date.

(B)
Notwithstanding any other provisions of
the Revised Code, a registrant may contract for and receive interest for
open-end loans at a rate or rates not exceeding twenty-one per cent per year
and may compute interest in each billing cycle by either of the following
methods:

(1)
By multiplying the daily rate by
the daily unpaid balance of the account, in which case the daily rate is
determined by dividing the annual rate by three hundred sixty-five;

(2)
By multiplying the monthly rate by the
average daily unpaid balance of the account in the billing cycle, in which case
the average daily unpaid balance is the sum of all of the daily unpaid balances
each day during the cycle divided by the number of days in the cycle. The
monthly rate is determined by dividing the annual rate by twelve.

The billing cycle shall be monthly and the unpaid balance on
any day shall be determined by adding to any balance unpaid as of the beginning
of that day all advances and permitted interest, charges, and costs and
deducting all payments and other credits made or received that day.

(C)
In addition to the
interest permitted in division (B) of this section, a registrant may charge and
receive or add to the unpaid balance any or all of the following:

(1)
All charges and costs authorized by
divisions (E), (F), (G), (H), (I), and (K) of section
1321.57 of the Revised Code;

(2)
An annual credit line charge,
for the privilege of maintaining a line of credit, as follows:

(i)
If the original credit line is less than
five thousand dollars, an amount not exceeding one hundred fifty dollars;

(ii)
If the original credit line
is at least five thousand dollars, an amount not exceeding the greater of one
per cent of the original credit line or two hundred fifty dollars.

(b)
For subsequent years an amount
not exceeding the greater of one-half per cent of the credit line on the
anniversary date or fifty dollars.

(3)
A default charge on any required minimum
payment not paid in full within ten days after its due date. For this purpose,
all required minimum payments are considered paid in the order in which they
become due. The amount of the default charge shall not exceed the greater of
five per cent of the required minimum payment or fifteen dollars.

(D)
The borrower at any time may
pay all or any part of the unpaid balance on the account or, if the account is
not in default, the borrower may pay the unpaid balance in installments subject
to minimum payment requirements as determined by the registrant and set forth
in the open-end loan agreement.

(E)
If credit life insurance or credit
accident and health insurance is obtained by the registrant and if the insured
dies or becomes disabled when there is an outstanding open-end loan
indebtedness, the insurance shall be sufficient to pay the unpaid balance on
the loan due on the date of the borrower's death in the case of credit life
insurance or all minimum payments that become due on the loan during the
covered period of disability in the case of credit accident and health
insurance. The additional charge for credit life insurance, credit accident and
health insurance, or unemployment insurance shall be calculated each billing
cycle by applying the current monthly premium rate for the insurance, filed by
the insurer with the superintendent of insurance and not disapproved by the
superintendent, to the unpaid balances in the borrower's account, using one of
the methods specified in division (B) of this section for the calculation of
interest. No credit life insurance, credit accident and health insurance, or
unemployment insurance written in connection with an open-end loan shall be
canceled by the registrant because of delinquency of the borrower in making the
required minimum payments on the loan unless one or more such payments is past
due for a period of thirty days or more. The registrant shall advance to the
insurer the amounts required to keep the insurance in force during such period,
which amounts may be debited to the borrower's account.

(F)
Whenever there is no unpaid balance in an
open-end loan account, the account may be terminated by written notice, by the
borrower or the registrant, to the other party. If a registrant has taken a
mortgage on real property to secure the open-end loan, the registrant shall
deliver, within thirty days following termination of the account, a release of
the mortgage to the borrower. If a registrant has taken a security interest in
personal property to secure the open-end loan, the registrant shall release the
security interest and terminate any financing statement in accordance with
section 1309.513 of the Revised Code.